Option for Regular Savings

[Corola]

You're missing that there is a deemed disposal 8 years after the first year:

1. no tax
2. no tax
3. no tax
4. no tax
5. no tax
6. no tax
7. no tax
8. no tax
9. deemed disposal
10. actual disposal

 

[ClubMan]

You're missing that there is a deemed disposal 8 years after the first year:

1. no tax
2. no tax
3. no tax
4. no tax
5. no tax
6. no tax
7. no tax
8. no tax
9. deemed disposal
10. actual disposal

Shouldn't it be

8. Deemed disposal

since that's its 8th "birthday"?

 

[Corola]

If you change it to calendar year starting the monthly investments on 1st Jan 2001 for ten years, the eighth birthday is in 2009:

2001 no tax
2002 no tax
2003 no tax
2004 no tax
2005 no tax
2006 no tax
2007 no tax
2008 no tax
2009 deemed disposal
2010 actual disposal

 

[Fortune]

the calculations done for 10 years including tax @41%

I'm just reminding that there needs to be a payment to revenue made in year 9. The comment above only mentioned making a payment in year 8.

 

[Fortune]

If you change it to calendar year starting the monthly investments on 1st Jan 2001 for ten years, the eight birthday is in 2009:

2001 no tax
2002 no tax
2003 no tax
2004 no tax
2005 no tax
2006 no tax
2007 no tax
2008 no tax
2009 deemed disposal
2010 actual disposal

Actual disposal would be in 2011 on that case.

 

[Corola]

I'm assuming ten calendar years lasting from 1st Jan to 31st Dec. The important thing is to include the 8 year anniversaries before the end point.

 

[dodo]

I'm assuming ten calendar years lasting from 1st Jan to 31st Dec. The important thing is to include the 8 year anniversaries before the end point.

If the 8th anniversary falls in any part of a tax year, the tax is due for that tax year. For example:

Deemed Disposal Timeline​

Investment Date	8-Year Anniversary	Tax Year	Tax Filing Deadline
January 1, 2001	January 1, 2009	2009	October 31, 2010
February 1, 2001	February 1, 2009	2009	October 31, 2010
...	...	...	...
December 1, 2010	December 1, 2018	2018	October 31, 2019

 

[Corola]

Yes, if you were holding the investment indefinitely.

But if you want to know how much the investment is worth at a point in time you need to pick the same valuation point for all the investments, not the tax filing deadline. I have chosen 31st December 2010, the end of the tenth year, because your scenario is €650 a month for 10 years.

You have to simulate paying all the remaining tax on that date to know the final net amount.

It is the same valuation point in your scenario, the tax is realised after 120 months:

ChatGPT and Co Pilot verifies it is correct,

• Calculate the Gross Final Value:
  • Monthly contributions of €650 with a 6% annual rate (0.5% monthly) over 120 months.
  • Using the future value of an annuity formula for monthly compounding, this should yield around €107,600 before taxes.
• Calculate the Total Contributions:
  • €650 x 120 months = €78,000.
• Calculate the Gain and Apply the Tax:
  • Gross profit = €107,600 - €78,000 = €29,600.
  • Tax on the profit: €29,600 x 41% ≈ €12,136.
• Calculate the Net Amount:
  • Final net amount = Gross final value - Tax on profit = €107,600 - €12,136 ≈ €95,464.

 

[galwegian44]

I have E620 after tax a month from a widows pension .I want to put away so I can gift to my daughters in eg in 10 years.
I have my work pension maxed out via AVC.
Revolute have Regular Savings at 3.49%.
APR.
Is there anything else worth looking into,no risk investment.
Age 53

It may or may not be applicable here but factor in your tax situation for inheritance also. If you are near or exceed the inheritance thresholds with the estate you will leave your children it may make sense to open the stock accounts in your daughter's names now and put up to €3,000 (annual gift exemption) into each account on an annual basis, rather than transfer a lump sum in ten years time.